One liner
UNIT 1
Entrepreneur is French word ‘Entreprendre’ and the German word “Unternehmen”
both mean “To undertake”
Connotations of French term Entreprendre: adventurer, undertaker and projector.
The term entrepreneur was first used by Richard Cantillon, French economist in 1755.
According to the Oxford dictionary an entrepreneur is one who organises, operates
and assumes the risk in a business venture in an expectation of making a profit.
Weber (1930), entrepreneurs are a product of the particular social conditions in which
they live, and it is the society which shapes the personality of individuals as
entrepreneurs.
Entrepreneur is a person
Entrepreneurship is a process
Enterprise is business unit
Entrepreneurial Behaviour (EB) is a function of an individual’s personality
characteristics and environmental factors i. e EB = f (PE)
Entrepreneurs have high achievement motivation that is an urge for excellence
entrepreneur prefers to take calculated (moderate) risk in dealing with the challenging
situation
According to Clarence Danhof entrepreneurs are classified in to four types
Innovating entrepreneurs introduces new goods/ service, invent new method of
production, discovers new market and reorganizes the enterprises.
Imitative entrepreneurs are characterized by readiness to adopt successful innovation,
but do not innovate.
Fabian entrepreneurs are characterized by great caution and skepticism in
experimenting any change in their enterprises.
Drone entrepreneurs exhibited the characteristics of refusal to adopt opportunities to
make changes; even they may suffer from the loss.
Drone entrepreneurs are conservative or orthodox in nature
Mobile entrepreneur leave the venture when it reaches the final stage of integration
and look for new opportunities.
Managerial entrepreneur refers to continue in the same venture by giving the
responsibility.
Empire Builders goes on creating a chain of new ventures
Entrepreneur is the owner of enterprise whereas manager is the servant of the
enterprise.
The term ‘intrapreneur’ was coined in the United States of America in the late
seventies.
The term intra + preneur stands for intra-corporate entrepreneur
An intrapreneur is an employee who takes the responsibility of creating innovation of
any kind of within organization.
Individual who needs to have different mindset about establishing and operating a
company refers to Ultrapreneur
Motivation serves as a driving force that propels individuals to embark on the
entrepreneurial journey.
Motivation is Latin word -MOVERE’ means To move
Motivation may be defined as goal seeking or goal directed behaviour or activity.
Intrinsic Motivation refers to the sake of doing things without expectations of rewards
Intrinsic Motivation is to be desired in learning and is more immediate.
Extrinsic Motivation is response to external rewards
Extrinsic Motivation take place when an incentive or goal is artificially introduced
into a situation.
Motivation cycle composed of four stages
The motivation process begins with a need.
The last stage of motivation cycle is reward.
The drive is the energized state that pushes the individual to take action to satisfy the
need.
An incentive is an external stimulus or goal that attracts the individual and directs
their behaviour toward a specific outcome.
Need hierarchy theory proposed by Abraham Maslow
According to Maslow, the needs range from basic physiological needs (e.g., food,
water, shelter) at the bottom to higher-level needs such as social belonging, self-
esteem, and self-actualization at the top.
ERG theory of motivation given by Clayton Alderfer.
ERG refers to existence needs, relatedness needs and growth needs.
Existence needs- Maslow’s fundamental needs
Relatedness needs -need for interpersonal relations
Growth needs- need for personal creativity
ERG theory stressed that when higher needs are frustrated then lower needs will
return even though they were already satisfied.
Two-Factor Theory of motivation given by Herzberg's
The "hygiene factors" are related to the work environment such as salary, working
conditions, and job security.
The "motivational factors" are intrinsic to the job itself and include elements like
recognition, challenging work, and personal growth opportunities.
Hgiene factors creates dissatisfaction
Expectancy Theory of motivation developed by Victor Vroom
Expectancy theory suggests that an individual's motivation to act in a particular way is
influenced by the belief that their efforts will lead to successful performance.
Force= valance x expectancy
Force is strength of a person’s motivation
Valence is strength of an individual’s preference for an outcome
Goal-Setting theory proposed by Edwin Locke
Goal-Setting theory states that specific and challenging goals are believed to direct
individuals' attention, increase effort, and promote persistence.
Theory X and Theory Y proposed by Douglas McGregor
Theory X assumes that employees are inherently lazy, dislike work, and need external
motivation and control
Theory Y assumes that employees are self-motivated, seek responsibility, and can be
creative and committed to their work.
Reinforcement theory proposed by B. F. Skinner
Mcclelland need theory proposed three types of needs i.e N power, N aff and N Ach
Equity Theory developed by J. Stacy Adams
Equity Theory states that individuals are motivated when they perceive a fair balance
between their input and the outcomes they receive compared to others.
SWOT analysis refers to analysis of individuals/organizations Strengths, Weakness,
Opportunities and Threats.
SWOT analysis technique is credited to Albert Humphrey
SWOT analysis is a planning tool
Strength and Weakness refers to internal environment
Opportunities and Threats refers to external environment
Strength is the basic asset of an organization
Weakness is the liabilty of an organisation
Match the pairs
a. Drone entrepreneur a. Change the venture
b. Fabian entrepreneur b. Continue in same venture
c. Mobile entrepreneur c. Skeptical
d. Managing entrepreneur d. Orthodox
a. Strenth a. Few competitor
b. Weakness b. Asset
c. Opportunity c. Rising cost
d. Threat d. Liability
a. Maslow a. Equity theory
b. Victor Vroom b. Achievement motivation theory
c. Stacy Adam c. Theory X and Y
d. Herzberg d. Goal setting theory
e. McClelland e. Two factor theory
f. Edwin Locke f. Reinforcement theory
g. Douglas McGregor g. Need hierarchy theory
MCQ
1. The term entrepreneur was first used by …………..
a. Richard Cantillon
b. Weber
c. Schumpter
d. Maslow
2. Entrepreneurial Behaviour ( EB ) is a function of an individual’s ………………..
a. Personality characteristics
b. Environmental factors
c. Psychological characteristics
d. Both A and B
3. ….……… is a technique that enables a group or individual to move from
everyday problems and traditional strategies to a fresh prospective
a. Market analysis
b. SWOT analysis
c. Entrepreneurship Development Process
d. None of these
4. ….…………… is a situation that blocks the abilities of the organisation to grow
and develop for reaching its ultimate goal
a. Strength
b. Weakness
c. Opportunities
d. Threats
5. Few and weak competitors, no such products in the market, favourable
government programs are examples of
Strength
Weakness
Opportunities
Threats
